Dec 23, 2012 10:05pm EST
. the deficit of about $1 trillion that is for fiscal 2013. that assumes that somehow the fiscal cliff doesn't happen and we don't reduce the deficit by $600 billion. national debt, about $16 billion , debt held by the public -- as a percentage it is getting up there. we've had it before. as we talked about two weeks ago it is not so much that the size of the debt it is how fast the debt is growing in comparison to the size of the economy. you don't want to pay off the debt but you want it to fall. host: how did we get to this point? why is the government spending so much and under this president, we've seen the debt go up $1 trillion each year over the last four years. where is it going? guest: there are two main ways to look at it. right now, we're still coming out of this economic crisis. so you have large debts for four years mainly because you have low revenues as people don't have jobs or they are getting paid less. then there has been extra spending programs over the last four years but also, we have this mandatory spending programs that grow on auto pilot. over the last four years th
Dec 24, 2012 1:05am EST
% chance its program will be insolvent in less than 20 years. meanwhile, its total deficit continues to grow and now stands at $34.4 billion. maintaining the status quo is no longer possible. governing -- they will expire in two years, meaning congress has an important opportunity to study the system, assessed its strengths and weaknesses, and produce solutions to support workers without discouraging participation in the voluntary pension system. we need the fact as quickly as possible. unfortunately, the administration has a history of slowing the work of this committee. it took nearly nine months to get answers to questions submitted by members of the committee, both republican and democrat, after a hearing in february. only now are we able to complete the hearing record. i am also troubled by missing reports that were due last year. these provided important details on multi employer pensions, including the sufficiency of current premium levels and the impact of funding rules on small employers. the law requires the pbgc to finish these reports by the end of last year, and that we'
Dec 23, 2012 12:35am EST
in spending. that is a reason you have trillion dollar deficit. we are borrowing $.40 of every dollar that we spent. i mentioned the gdp figures. the historic average is that the government takes an 18% of gdp and spends 20% of gdp in spending. about 2% is a manageable deficit. the problem over the past three years is that we are at 60% and 24%. that gap is too big. at what level do you set the tax rate and what level do you have the spending rates? taxing a 24% will probably never happen. the question is, where is that middle ground do you end up? the bowles-simpson commission had 21%. members of congress have insisted that it does not go higher than 18%. that is the fight that will play out over the next couple of years. how much do we tax? how much are we paying for it? host: we want to remind our viewers and listeners of the consequences of going off of the fiscal cliff. in terms of the tax increases, it would mean another $221 billion. .he bush tax cuts expiring i payroll tax relief would expire and raise another $95 billion. i dish the provisions expire -- additional provisions expire f